Long Term 38.2% Support in Coffee Under Pressure
29 September 2011
WEEKLY CHART -CONTINUATION
Initial recovery off 38.2% 228.00 support was deep but, in the end, proved corrective in nature.
The return to this key support threatens to break lower, prolonging Coffee's pullback phase.
DAILY CHART -Dec-11:
The Sep drop back is now nearing potential support from the projected channel base at 225.00, which ties in with the 38.2% level on the chart above.
However, also note a Fibo projection at 217.00 and slightly lower equality target (May/Aug downleg extended off 290.85 01-Sep high) at 212.00. An overshoot of above support could well be temporarily contained by this area, with any subsequent rebound proving short-lived.
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